Income Tax Query.

pc_mikey

Hi,
I am currently employed full time 40hrs a week.
i am looking at doing some extra work to boost my income.
the position i am looking at requires you to be self employed and pay your own tax.
is this possible?
any help greatly received.
cheers

tigtag02

Yes, its possible

YOu have 3 months to register as self employed and then you complete your tax returns yearly:D

taxdoctor

As TigTag02 says you will need to register with HM Revenue & Customs (HMRC) by completing a form called a CWF1.

This will give them details of the work you are going to do and the date you are planning to start. You've got 3 months to do this or they will slap a £100 fine on you.

Make sure you keep a record of all your income and any expenses you have incurred.

Then you will be issued with a tax return at the end of the tax year, 5th April. This has got to be completed showing your earnings from all sources (don't worry you wont pay tax twice on your employment earnings!)

Your tax payable will then be calculated based on the profits you have made from your self employment (taking into account your other earnings).

You then pay the tax by January 31st after the end of the tax year.

Another thing to note is if your self employed earnings are going to be over £4825 for the coming tax year then you will also need to pay class 2 National insurance, you can pay this by direct debit and the current rate is £2.30pw.

Hope that helps!

Cook_County

It is possible, but only if you actually are self-employed. So I assume this is the kind of work where you supply your own tools, set your own hours and rate of pay and could substitute other workers.

taxdoctor

Cook_County makes a good point,

My previous post assumes that you pass the eligibility for self-employment in the first place.

If you're unsure pop down to your local HMRC office as they have a good leaflet on whether you are considered self employed or employed.